Author Topic: 2008: The Banking Crisis Explained  (Read 120 times)

Offline SGOS

2008: The Banking Crisis Explained
« on: August 05, 2018, 07:31:26 AM »
Just an accident beyond our control?  We don't want to think people like bankers are flat out criminals. We'd like to think politicians are responsible people, not easily bribed to grant special favors to line the pockets of their biggest donors at tax payer expense.  But I believe deep down, most of us understand that the banks and the Obama Administration and at least four administrations before him took the American people for a ride.  To be fair, this whole thing started 50 years ago with deregulation that allowed banks to commit fraud.  And guess what?  They did!  And the people responsible weren't even punished.

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I don't know much about this economist, Bill Black.  He looks like a street person, but nothing he says here surprises me in the least.  In fact, I intuitively knew it was true.  Did you notice when George Bush was elected, he placed key members of the oil industry in key government positions?  Did you notice he also included neo-cons who wanted to invade oil rich countries?  Did you notice that when Obama was elected, he placed Wall Street Bankers in Key government positions?  Probably just coincidences, right?   There wouldn't really be a connection to the great banking bailout and former bankers running the country when they got the bailout, right?

Of course, they said the economy would collapse if the banks were not bailed out.  But the economy still collapsed, bigger than anything since the great depression, but the banks were bailed out and made even more money on top of the worthless bonds they were selling.  OK a couple of banks failed, but it's just a coincidence that the key government officials placed by Obama all came from banks that survived.  Or is it a coincidence that the banks that survived were the ones who got their CEOs into government positions?  No connection there that I can see.  </sarc>

Please don't think I am trolling Obama supporters here.  This crisis just peaked during Obama's presidency.  No one president is solely to blame,  but they are certainly all to blame.  This was caused by our government, which has been overrun by corruption, perhaps always has been, but I don't think it has to be that way, but maybe I'm naïve.

After the collapse, Alan Greenspan, who I once thought was a great man, admitted he made a mistake when he believed bankers would never act irresponsibly under deregulation.  What a stupid, stupid, man!  I felt betrayed, but you know what? I was just as gullible and trusting as everyone else, especially about Greenspan.  No; That's not quite true.  I actually expected some shit exactly like this to happen.
« Last Edit: August 05, 2018, 07:39:30 AM by SGOS »

Offline Baruch

Re: 2008: The Banking Crisis Explained
« Reply #1 on: August 05, 2018, 09:26:34 AM »
You are very naive and very slow.  Like an American voter.  Most people knew this sometime in 2009.  And not just Bill Black knew what he was talking about.  Ever hear about Clinton ending Glass-Steagle, or stopping his own regulator from regulating what would soon become a quadrillion dollar secondary Black market?  It was hatched there and then, by a Democrat.  Obama and Hillary are also owned by the banks.  A new collapse is coming.  Economic false flag is ever better than terrorist false flag.  Like soccer players, George W set up for the score, and Obama kicked it into the net.  And the goalie was hogtied.  There were about 8 guys who predicted the 2008 crisis.  Bill Black is one (famous where I Internet) and Steve Keen is another.

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Keen applies chaos dynamics theory, to explain why this happened (mechanically not politically) and the model does work.  Conventional economists are politically connected, and ignore what needs to be ignored, to make the predictions the politicians want.  Fixing the analysis in advance, and ignoring empirical data and facts about the political structure.  Both men have been punished for telling truth to power.  Even econometrics is fraudulent, because the GDP, Unemployment and Inflation are fixed in advance by modifying the formulas.  That is why I post Shadowstats.
« Last Edit: August 05, 2018, 02:45:10 PM by Baruch »
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Offline Baruch

Re: 2008: The Banking Crisis Explained
« Reply #2 on: August 05, 2018, 09:50:47 AM »
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You have been had, thru poor education and political ideology.  Not just the S&L collapse of the 80s.  Don't own anything ... the government intends to take it from you.  Don't take out any loan, you just sold yourself and your family into debt slavery.  This was a problem in ancient Athens, that led to democracy (revolt by debtors).  Do you speak French yet?  There is a longer version of this first video, for those with longer attention spans.

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Since econometrics is fraudulent ... you can bet that the current debt to equity ratio for the banks is greater than 2.2.  With the Federal government and the Federal reserve, you have the national debt to equity ratio of GDP vs Gross Federal Debt

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Other important statistics ... business and household debt ...

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Here is a handy list of the health of most banks and credit unions in the US ...

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My old bank finally succumbed to liar loans made in 2008 ... 10 years later.  They made a poor investment underwriting new houses in N Texas, just before the real estate collapse.  They shouldn't have been lending out of state ... because it is less likely that they understand the local market.  My bank was over 100 years old, and had survived the Great Depression.  It couldn't survive Clinton/Bush/Obama.  Their assets (such as they are) were acquired by another small bank, last month.  So far my credit union is highly rated and stable.

This is why your dollar of 100 years ago is now worth about 2 cents.  That is the real lending ratio ... 50 to 1.  During the 2008 period, at times it got to 100 to 1.
« Last Edit: August 05, 2018, 02:33:12 PM by Baruch »
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Offline Baruch

Re: 2008: The Banking Crisis Explained
« Reply #3 on: August 05, 2018, 10:17:14 AM »
The secret history ...

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The real villains were Clinton, Bush, Obama.  They authorized the fraud structure, the Ponzi scheme.  And prevented regulation of it.  This was called banking reform in 2000 ... it was banking destruction.

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More than six, because Bill Black isn't listed.  Steve Keen is.

Lehman Brothers gets mentioned, but they were pikers compared to AIG, who was running the Black economy in Credit Default Swaps.
« Last Edit: August 05, 2018, 03:28:49 PM by Baruch »
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Offline SGOS

Re: 2008: The Banking Crisis Explained
« Reply #4 on: August 05, 2018, 11:44:07 AM »
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You are very naive and very slow.  Like an American voter. 
Before I respond to your relevant comments.  You can go fuck yourself.

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Most people knew this sometime in 2009.
I would hope they would have been aware before that.  I was sensing danger during the real state bubble around 2006.  But I didn't know about subprime until 2008.

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Ever hear about Clinton ending Glass-Steagle, or stopping his own regulator from regulating what would soon become a quadrillion dollar secondary Black market?
Yes, and I believe Black even mentioned it in the interview.  Why do you always tell people they are slow, and then proceed to teach them things they already know? 

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You have been had, thru poor education and political ideology. 
OMG you are full of yourself.

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Not just the S&L collapse of the 80s.  Don't own anything ... the government intends to take it from you.  Don't take out any loan, you just sold yourself and your family into debt slavery.
Debt free for 30 years.  But while that worked for you and me, I'm not sure it's right for everyone.  It depends on factors that don't apply evenly across the board.  But it's probably a good goal for little people.

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The real villains were Clinton, Bush, Obama.
I would push it back farther to the popular interest in deregulation sold on the popularity of Reagan.  It's true that future presidents finished Reagan's dream for him.  But banking deregulation is just an outgrowth of corporate deregulation.  I oppose the government allowing people to commit fraud; Regulation is what I want.


« Last Edit: August 05, 2018, 11:45:54 AM by SGOS »

Offline Baruch

Re: 2008: The Banking Crisis Explained
« Reply #5 on: August 05, 2018, 02:23:05 PM »
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Before I respond to your relevant comments.  You can go fuck yourself. - Just commenting on your self characterization ... nothing to be proud of either way, or by either of us.

I would hope they would have been aware before that.  I was sensing danger during the real state bubble around 2006.  But I didn't know about subprime until 2008. ... Same here

Yes, and I believe Black even mentioned it in the interview.  Why do you always tell people they are slow, and then proceed to teach them things they already know? ... you already knew all about this?  That is not how you wrote your comment.  Cavebear might have written it that way, but you didn't.

OMG you are full of yourself. ... I didn't know sub-prime or the rest until after 2008.  Haven't had a mortgage since 1989 (too poor).  Have had car loans and credit cards, and even then ... had to go thru reorganization of finances twice (2000 and 2003) thanks to ex.  Been slumming it since then.

Debt free for 30 years.  But while that worked for you and me, I'm not sure it's right for everyone.  It depends on factors that don't apply evenly across the board.  But it's probably a good goal for little people. ... Yes, good bourgeoisie status for you (not sarc).  Wish everyone was middle class or better.

It is easy to comment on eg: women regarding pregnancy, when you are a man.  Similarly unless in the past or currently you are slumming it, go see a loan shark (no, really don't do that).


I would push it back farther to the popular interest in deregulation sold on the popularity of Reagan.  It's true that future presidents finished Reagan's dream for him.  But banking deregulation is just an outgrowth of corporate deregulation.  I oppose the government allowing people to commit fraud; Regulation is what I want. -

I agree.  Reagan started it (actually the people behind him, like every other talking head).  But Nixon took us off the international gold standard (not national gold standard, FDR did that) and put us on the petro-dollar.  That is why all our young men and women have to go to oil producing countries to control the hydrocarbons.  I also want regulation, but non-partisan, non-French.  We used to have that until the 80s.  First they came for the S&L, but I did nothing.  Then they came for the banks, but I did nothing.  Eventually they came for the credit unions, but I did nothing.  Good men who do nothing ... useless space.


Ever since the Grain Dole in ancient Rome ... people have believed in some version of Santa Claus.  That you don't have to work, in order to eat.  And that aside from barter, there is no free lunch (in the sense that money is required).  We also refuse to believe as a species, that even our best ideas, have negative consequences.  Also that most of our ideas aren't even good ideas.

We are the Whore of Babylon ...

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The invention of cash (actual gold or silver, not a promissory note on a clay tablet) was an innovation.  The Elite are taking us back to ancient Mesopotamia/Egypt/India/China.  If money is a kind of promise, then what can a society based on lies, frauds and theft do?  Gold and silver coin was simply seen as more reliable than the king's promises (full faith and credit ... sure).

Monarchy isn't fraud, the King doesn't have to give you jack shit.  But elective government is fraud, same as is was in Athens and Rome.

An entertaining short on the history of cash money ...

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« Last Edit: August 05, 2018, 03:27:47 PM by Baruch »
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Offline SGOS

Re: 2008: The Banking Crisis Explained
« Reply #6 on: August 05, 2018, 03:44:02 PM »
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Yes, good bourgeoisie status for you (not sarc).  Wish everyone was middle class or better.
Hardly Bourgeoisie.  I'm middle class, like at the bottom of the middle class.  I can't brag about money, although I've always been pretty sensible about what I could afford.

Offline Baruch

Re: 2008: The Banking Crisis Explained
« Reply #7 on: August 06, 2018, 01:34:05 PM »
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The S&L disaster explained.  Sorry for lovers of John McCaine ... but he and the other Keating Five should be in prison.

More Bill Black on why we are going down the tubes soon ...

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« Last Edit: August 07, 2018, 04:46:24 AM by Baruch »
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Re: 2008: The Banking Crisis Explained
« Reply #8 on: August 07, 2018, 04:40:35 PM »
Right, now what can you tell us about the 2019 banking crisis?   
Winner of WitchSabrinas Best Advice Award 2012


We can easily forgive a child who is afraid of the dark; the real
tragedy of life is when men are afraid of the light. -Plato

Offline SGOS

Re: 2008: The Banking Crisis Explained
« Reply #9 on: August 07, 2018, 05:39:00 PM »
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Right, now what can you tell us about the 2019 banking crisis?   
I don't know who this was addressed to, but I expect another banking crisis, although I wouldn't predict the time.  I think it will happen because I don't think the underlying causes have been fully addressed.  I don't know what will happen next.  But I'm not confident that we have seen the last of it.  I hope it's an unfounded concern.  I don't want to go through it again.

Offline Baruch

Re: 2008: The Banking Crisis Explained
« Reply #10 on: August 07, 2018, 06:55:07 PM »
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Right, now what can you tell us about the 2019 banking crisis?

It will probably arrive, but not on time.  Having things arrive on time is proof they are arranged by the usual suspects.  I am not sure the 2008 crisis was planned, because it did come at an awkward time for the Republicans, but not so bad for the Democrats.  The current trade war is definitely not a random act of nature ... great nations with great ambitions are involved.  The current false prosperity, and over indebtedness will bear bitter fruit, eventually.  But that is like saying the Sun will probably come up tomorrow.  Economics is descriptive, and mostly deceptive (spin doctoring after the fact).  It is not prescriptive ... because that depends on politics, not economics.
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Offline Baruch

Re: 2008: The Banking Crisis Explained
« Reply #11 on: August 07, 2018, 06:55:58 PM »
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I don't know who this was addressed to, but I expect another banking crisis, although I wouldn't predict the time.  I think it will happen because I don't think the underlying causes have been fully addressed.  I don't know what will happen next.  But I'm not confident that we have seen the last of it.  I hope it's an unfounded concern.  I don't want to go through it again.

Perhaps the targets of impoverishment are Europeans this time?
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Offline Cavebear

Re: 2008: The Banking Crisis Explained
« Reply #12 on: August 09, 2018, 04:49:20 AM »
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Right, now what can you tell us about the 2019 banking crisis?

The tariff wars will cause a worldwide economic downturn.  That is why when I first saw Trump talking about tariff, I bailed out to protect my assets.  While the stock markets slowly go down for about a year, I'm earning 3% in Money Market Accounts

I THINK it is going to get worse before it gets better. 
Atheist born, atheist bred.  And when I die, atheist dead!

Offline Baruch

Re: 2008: The Banking Crisis Explained
« Reply #13 on: August 09, 2018, 06:39:50 AM »
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The tariff wars will cause a worldwide economic downturn.  That is why when I first saw Trump talking about tariff, I bailed out to protect my assets.  While the stock markets slowly go down for about a year, I'm earning 3% in Money Market Accounts

I THINK it is going to get worse before it gets better.

Unfortunately you are right.  But the current trade arrangements (before trade war) were ... temporary.  Status quo isn't.  A full shutdown of international trade would be devastating for billions of people.  An extreme position if there ever was one.  At one time multinational corporations and organizations were seen as tools of NATO and the US in the Cold War.  Originally the UN was to be a tool of Western hegemony in general, and Anglo-American hegemony in particular.  Only worked one time, when the Soviet ambassador had to leave the room to take a piss (Korea intervention).
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